Over time, this additional annual payment can subtract approximately 7 years off the life of a typical 30 year mortgage.

Then subtract your deductible say $5000 and the payout is $10,000.Now… real world you own a maintenance company and can probably put in a kitchen for a lot less than $30k so take the ins money and do your thing.

You can actually decrease your debt ratio by buying a rental property assuming it gets enough in rents that after the 25% vacancy factor and subtracting the PITI, you have a positive number.

Does that mean we add the $20k and then subtract it from our total costs?

Take the 4th number, subtract the other 3, that is your profit (or loss).All of the other stuff is just fluff.If you didnt know what was happening, that's the price of education

Once we do the reno, we take sales price and subtract out what we put into the property and split the "equity gain" 50/50.Example:As-is: $130,000 Rehab costs $40,000ARV: $225,000the rehab costs are recouped at closing and the rehab built an additional $55,000. 

Giving up layers of direct control and effort subtracts from not only the payout, but also the wisdom I would gain if I managed it myself. 

And adding or subtracting to their portfolio matters to them. 

I subtract principal paydown from the monthly net to get what I call your "rent equivalent."

Then subtract closing costs and any renovations needed.